Germany non-committal on budget support resumption to Malawi

Germany has remained non-committal on resuming budget support to Malawi in the near future but assured that it is committed to continue supporting the people of Malawi on their path to sustainable development.

Angered by ‘Cashgate’ corruption scandal which dates back from 2005 but uncovered between September and November 2013, Malawi’s major donors including Germany—who traditionally contributed about 40 percent of the national budget—withheld budget support worth $150 million, leaving a huge fiscal gap at Capital Hill.

Germany Ambassador to Malawi, Jurgen Borsch, said on Tuesday that his government has not made any decision to provide direct monetary aid to the government of Malawi.

“It is a process, we will come to that decision and will cross the bridge when we get to it,” he said.

He however said his government has a bilateral cooperation with Malawi.

Under the financial cooperation, Germany has provided Malawi with 45 million Euros (Mk 36 Billion) which will see improvement in the health, education and social protection sectors.

“We want our support to go direct to the districts where people are in need. Some of the projects are on education, health and crop diversification,” said Borsh.

“We have a comprehensive approach. The projects are in line with the interests of the people. Large number of people will benefit,” he added.

Germany, a development partner since Malawi’s independence in 1964, also provided the country with 4million Euros (Mk3.1 Billion) as a response to the hunger crisis facing the country.

Malawi is urged to accelerate public financial management reforms to restore trust and confidence in the budget process and foster donor re-engagement.